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Bill requires interest paid for child support overpayments

Posted: Thursday, April 06, 2000

JUNEAU (AP) -- The state would pay interest on some overpayments made to the Child Support Enforcement Division under a bill approved by the House on Thursday.

House Bill 428 requires the division to pay 6 percent interest on overpayments if they were a direct result of a mistake made by agency employees.

''I think this is just a fairness issue,'' said Rep. Gene Therriault, co-chairman of the Finance Committee, which sponsored the bill.

The Child Support Enforcement Division charges 6 percent interest if parents are delinquent with payments, said Therriault, R-North Pole, and parents should be entitled to the same amount if they overpay because the agency erred.

CSED Director Barbara Miklos said the bill could cost up to $3,000 and would be paid out of the agency's operating budget.

Therriault said the bill would provide an incentive to the agency to be more careful when calculating support payments and more prompt in returning overpayments.

The bill now moves to the Senate for consideration.



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